§ 68. Sir C. KINLOCH-COOKEasked the Chancellor of the Exchequer whether the deficit of £274,000 on Post Office services shown in Table IX. of the Financial Statement of Revenue and Expenditure is due to exceptional circumstances affecting Post Office administration; whether the sum of £3,430,000 provided by borrowing to meet capital expenditure upon postal services indicates that the Post Office is unable to meet maintenance and renewals out of revenue; and whether, in view of this deficit and new borrowing, the Post Office must now be regarded as a non-revenue-producing Department?
§ The POSTMASTER-GENERAL (Mr. Illingworth)My right hon. Friend has asked me to answer this question. The deficit of £274,000 upon Post Office services shown in the table referred to is due principally to the war bonus and to the general rise in the cost of labour, materials and services, which has only in part been met by additions to the postage and other rates charged to the public. The cost of maintenance and renewals is always charged against revenue and is provided for in the Estimates. The sum of £3,430,000 to be raised by borrowing is capital expenditure upon new telephone works and upon the Post Office (London) Railway and is authorised by Act of Parliament. The war bonus, including the recent award, is estimated to amount to nearly £14,000,000 per annum, and so long as it continues at its present figure I fear the Post Office must be regarded as a non-revenue-producing Department.